Means Tested Benefits & Financial Checks

frothy-coffee_2

Hi,
I'm in receipt of a couple of benefits, one of which is means tested and has been adjusted down accordingly. I have always declared all my financial information and have no intention of commiting fraud.
And anyway, I'm the sort of person who would worry themselves sick if I made a fraudalent claim, afterall it's only money.

I hope they do check the information people declare on the forms but I wonder if they do? To me it seems like the authorities either rely on whistle blowers, or the flagging up of blatantly dishonest claims to catch the fraudsters

I'd be interested in anyones thoughts?

rogerblack

To check everyone's claim, in every detail to catch any fraud may end up spending considerably more than the fraud costs.
If targeted measures can catch most fraud, this may be more efficient and cost effective.

zagfles

It's easy for them to cross reference PAYE records with tax credits/benefit claims, they have your NI number for both on the IT systems and I'd imagine it's done automatically with the computer flagging discrepancies for manual checking.

It's obviously a lot harder for fraud such as the self employed not declaring all their earnings and cash in hand working etc, but they have various methods for identifying those too...

frothy-coffee_2

You're probably right.

Friends tell me I'm a fool for declaring (for example a SMALL pension). But I think it's easy them saying that when they're not the one signing the declaration at the end of te form!

BigAunty

This is a question for Discussion Time!

As it happens, the National Audit office run data matching exercises every few years from a variety of sources and this often throws up spectacular numbers of fraudsters.

Anything from
- local authority workers receiving pensions but not declaring them to the DWP
- landlords or their close relatives who conceal that who owns the property to falsely claim housing benefit for it
- people falsely presenting themselves as homeless when they own property elsewhere
- people who have no right to buy their council house
- social housing tenants who illegally sublet their properties
- full time students who claim Job Seekers Allowance, unaware that the Audit office know who has applied for student loans,

The HMRC target the self-employed receiving tax credits who they suspect are exaggering the hours they work and concealing their income. Not sure how they find this out, but they do audits and demand evidence.

frothy-coffee_2

BigAunty wrote: »

As it happens, the National Audit office run data matching exercises every few years from a variety of sources and this often throws up spectacular numbers of fraudsters.

That's actually quite reassuring. Although I do think if the goverment get any money back (or realise a saving) they will just fritter it away on some stupid initiative or other. But that's not saying I condone fraud.

[Deleted User]

whilst i dont condone benefit fraud i think as a nation we are becoming obssessed with it,far better if we expended time and energy on tax fraud,it would provide a far higher yield

frothy-coffee_2

Agree.

Total benefit fraud is a tiny percentage of total tax evasion

rogerblack

frothy-coffee wrote: »

Agree.

Total benefit fraud is a tiny percentage of total tax evasion

Which is a tiny fraction of tax avoidance.

It baffles me why a certain portion of society, including government ministers, seems to have no problem employing accountants to reduce their tax bill, and yet campaign against 'benefit cheats' - who manage quite legally to get what they are entitled to, and happen to be members of an unpopular group.

zagfles

woodbine wrote: »

whilst i dont condone benefit fraud i think as a nation we are becoming obssessed with it,far better if we expended time and energy on tax fraud,it would provide a far higher yield

They're often the same thing. The self-employed person under-declaring their earnings, or the person working cash-in-hand, will usually be dodging tax as well as over-claiming benefits & tax credits.

zagfles

rogerblack wrote: »

Which is a tiny fraction of tax avoidance.

It baffles me why a certain portion of society, including government ministers, seems to have no problem employing accountants to reduce their tax bill, and yet campaign against 'benefit cheats' - who manage quite legally to get what they are entitled to, and happen to be members of an unpopular group.

If they're "cheats" then that implies fraud, rather than legally claiming what they're entitled to. There's nothing wrong with people using legal methods to pay less tax or claim more benefits, if you think there is then address the system rather than judging the people who read the rules. As I keep saying on this forum...